Where Will RH Stock Be in 1 Year?
RH (NYSE: RH) investors have been on a roller-coaster ride this year. The home furnishings specialist's stock has been up by more than 40% in 2023, and it's been down by nearly 20% as well. Shareholders' current returns are running closer to that negative result, with the stock down slightly compared to the wider market's 11% increase.
The short-term outlook is cloudy for its business, to be sure. But investors have some solid clues about where sales and earnings trends might be heading. So, let's look at whether the next year should be a positive or negative one for RH stock.
RH's most recent operating results painted a picture of a strong business operating in a difficult selling environment. Sales fell hard in Q2, declining to $800 million from nearly $1 billion a year earlier. That's no surprise given how strong the luxury furniture market was last year, and how weak demand has become in recent months. Inflation and rising mortgage rates have slowed new home sales and have pinched buyers' budgets, too.
Source Fool.com
